IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 6 2024
DOI: 10.56201/ijbfr.v10.no6.2024.pg36.48

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Electronic Tax System and Tax Compliance, Evidence from Nigeria Tax Jurisdiction

Confidence Joel IHENYEN (PhD, A CA), Kelvin Eberechukwu EHIOGU, James Alabor ODONI

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Abstract

The study explores the impact of e-tax on tax submission conduct among taxpayers in Nigeria. To realise the research’s aim, three variables were used as proxies for the e-tax system: user friendliness, convenience, and perceived reduced tax submission costs. The study sample of 100 respondents was randomly drawn from SMEs in Bayelsa and Delta States, Nigeria. The basis for inclusion in the sample was the filing of online tax returns. The instruments for data collection were authenticated by specialists and submitted to a Cronbach's alpha test of dependability. An overall reliability coefficient of 0.76 was obtained, which suggests that the instrument was consistent in measuring what it was designed to measure. Descriptive statistics and the multiple regression technique were utilised to predict the influence of the distinct factors on tax submission behaviour. Based on the respective coefficients (UFetax = 0.123, p = 0.025 < 0.05 & Cetax = 0.696 p = 0.000 < 0.05), and F-stat. = 135.0382, p-value of 0.001 less than 0.05), the study concludes that a user-friendly online interface, and convenience of the e-tax structure substantially impact tax compliance among taxpayers. Based on the conclusion reached, the following recommendations are made, among others: The government has to do more to raise people's understanding of taxes, examine the internet-based tax filing system to lower the cost of use, and offer an easy way for people to utilise it.

keywords:

Compliance, Electronic, Tax, Taxpayers, Convenience, Cost

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